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An important (additional) consideration for a direct foreigninvestment is:A. political risk.B. maximizing the firms profits.C. attaining a high international P/E ratio.D. all of the above.

Which of the following statements about exchange rates istrue?A. Exchange rates were fixed prior to establishing a floating-rateinternational currency system and all countries set a specificparity […]

________ risk is generally considered only a paper gain orloss.A. TranslationB. TransactionC. FinancialD. Economic

If the quote for a forward exchange contract is greater than thecomputed price the forward contract is:A. overvalued.B. undervalued.C. at equilibrium.D. a good buy.

Farar Inc. projects operating income of $4 million next year.The firms income tax rate is 40%. Farar presently has 750000shares of common stock no preferred stock […]

Castle Corp. generated $2 million in operating income from salesof $20 million during the latest fiscal year. The firms interestexpense was $500000 and the corporate income […]

Which of the following is considered to be a deficiency of theIRR?A. It is not useful in accounting for risk in capitalbudgeting.B. It fails to utilize […]

What deficiency of the IRR does the MIRR overcome? A. Theranking problem B. The fact that the IRR does not take thetime-value of money into consideration […]

Bender and Co. is issuing a $1000 par value bond that pays 9%interest annually. Investors are expected to pay $918 for the10-year bond. Bender will have […]